Charity Update August 2022

The Charities Act 2022 – Expected Changes

The Charities Act 2022, which amends aspects of the Charities Act 2011, was passed by parliament in February. There are a number of expected changes, which are likely to come into force in 2023. Charity trustees will have more freedom to make ex gratia payments. Boards will be able to make payments of up to £20,000 without needing to consult the Charity Commission.

Charities will also be able to spend donations more easily when they come through fundraising campaigns that either miss or exceed their target. According to the existing rules, charities might have to spend several months checking with givers about how their donation will be used.

The commission says the legislation will allow organisations to spend those donations on new purposes, if they come to less than £1,000, and will create “a simpler process” for dealing with larger totals. The Act also promises to simplify charities’ right to pay trustees for goods they provide to their organisations. The Charity Commission said it would release more guidance later in the year regarding rules that will come into force in 2023. More information is included in Charity Commission guidance.

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The information in this newsletter must not be relied on as giving sufficient advice in any specific case.